ED Summons Prakash Raj For Questioning In 100 Crore Ponzi Scheme
Enforcement Directorate (ED) summoned actor Prakash Raj for questioning in an alleged Rs 100 crore scam. The allegation was about his involvement in Ponzi scheme of Pranav Jewellers, of which Mr. Raj was the brand ambassador.
The Trichy based jewellery chain was raided on November 20 under the provision of Prevention of Money Laundering Act (PMLA). The jewellery chain has branches in several locations like Puducherry and Tamil Nadu including Chennai. The jewellery was accused for allegedly involving in Ponzi scheme (a form of money swindle where the early investors are paid back with sums obtained by the later investors in order to create an illusion of profit) of 100 crores.
Sources within the ED indicated that Prakash Raj’s summoning is as part of the broader investigation into the alleged Ponzi scheme. According to India Today, the actor was asked to depose from the company before the federal agency.
In a statement posted on its X (formerly twitter), ED said, “During the searches, various incriminating documents, unexplained cash of Rs 23.70 lakh, bullion/ gold jewellery weighing 11.60 Kg have been seized.”
ED has conducted searches on 20.11.2023 under the provision of PMLA, 2002 in the case of a Ponzi Scheme run by certain accused persons in the name of entity M/s Pranav Jewellers. During the searches, various incriminating documents, unexplained cash of Rs 23.70 lakh, bullion/…
— ED (@dir_ed) November 22, 2023
The report of Pranav Jewellers involvement in the Ponzi scheme came under the attention of ED through an FIR lodged by the Economic Offences Wing (EOW), IN Trichy against the Jewellers and those involved in the alleged scheme. According to the FIR, Pranav Jewellers garnered a whopping 100 crores in the name gold investment scheme.
